The International Finance Corporation (IFC) has approved a proposed investment of up to US$120 million in Zafiri Investment Vehicle, a new permanent capital vehicle established in Mauritius.
The initiative seeks to address the persistent energy access gap in Sub-Saharan Africa by providing long-term, patient capital for scalable clean energy solutions.
Zafiri will focus on investing in companies operating in two priority areas:
- Distributed Renewable Energy (DRE) — including solar home systems and mini-grids.
- Clean Cooking Solutions — technologies that reduce dependence on biomass and improve indoor air quality.
The vehicle has a clear social mandate to deliver reliable electricity and clean cooking access to at least 30 million people over its lifetime.
Capital Structure and Blended Finance Mechanism
Zafiri is targeting a phased capitalisation approach:
- Initial Capitalisation: US$300 million (US$150 million Senior Equity + US$150 million Junior Equity).
- Expansion Phase: Additional US$300 million, primarily from commercial investors.
- Long-term Target: US$1 billion Net Asset Value within 10–15 years.
The US$150 million junior equity tranche serves as blended finance to de-risk the vehicle and attract commercial capital into Sub-Saharan Africa’s energy sector.
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IFC’s proposed US$120 million commitment will form a significant part of this catalytic layer, helping to mobilise additional private investment.
While the investment framework is advancing, the appointment of the investment manager remains pending and will be a key next step.
Strategic Significance
This partnership reinforces IFC’s commitment to sustainable energy transition in Africa.
By focusing on decentralised solutions, Zafiri addresses two of the continent’s most pressing challenges, including lack of electricity access and reliance on harmful traditional cooking fuels while supporting economic development and climate goals.
The blended finance structure is particularly important in a market where many energy projects are considered too risky or small-scale for purely commercial investors.
IFC’s involvement is expected to catalyse additional private capital and accelerate deployment of impactful, locally relevant solutions.
Looking Ahead
The International Finance Corporation’s proposed US$120 million investment in the Zafiri Investment Vehicle represents a strategic and catalytic effort to close the energy access gap in Sub-Saharan Africa.
Through a blended finance approach targeting distributed renewable energy and clean cooking solutions, Zafiri aims to provide reliable electricity and cleaner cooking options to at least 30 million people.
Zafiri Fund Overview
Zafiri Fund: Zafiri is a new Africa-focused distributed renewable energy investment platform created under the World Bank Group and AfDB’s “Mission 300” initiative to expand electricity access across Sub-Saharan Africa. It targets mini-grids, solar home systems and clean cooking businesses.
Zafiri World Bank: The World Bank Group, through IFC, co-developed Zafiri with the African Development Bank Group and partners, including the Rockefeller Foundation, TDB Group and Nordic Development Fund.
Zafiri-Inspired Evolution: Inspired Evolution was appointed investment manager for Zafiri. The Cape Town-based firm manages over $850 million in climate and clean-energy investments across Africa.
Energy investment funds: Major African clean-energy funds include Zafiri, Africa Renewable Energy Fund (AREF), Evolution Funds by Inspired Evolution, SEFA, and climate-focused infrastructure funds supporting solar, wind, storage and off-grid energy projects.
Grants for renewable energy projects in Africa 2025: Key 2025 funding sources include the Sustainable Energy Fund for Africa (SEFA), Rockefeller-backed catalytic finance programmes, AfDB clean-energy initiatives and distributed renewable energy grants targeting underserved communities.
AfDB renewable energy efficiency consultant: The African Development Bank Group regularly recruits renewable energy and energy efficiency consultants for SEFA, Mission 300, climate finance and infrastructure programmes through its careers and procurement portals.
